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COBRA Underpayments
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COBRA Underpayments
Discuss employment-law issues such as family leave, overtime, disabilities law, harassment, immigration and termination.
Under the recent amendments in the law, how long must I give a former employee who underpays her COBRA, to make up the difference? Do I have to give her 30 days from when I receive the check, does she
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Forums » Topic Forums » Legal Forum » COBRA Underpayments
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COBRA Underpayments
posted at 7/13/1999 12:28 AM EDT
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Posts: 399
First: 6/21/1999 Last: 9/14/2005 |
Under the recent amendments in the law, how long must I give a former employee who underpays her COBRA, to make up the difference? Do I have to give her 30 days from when I receive the check, does she only get till the end of the grace period? |
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COBRA Underpayments
posted at 7/13/1999 11:25 PM EDT
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Posts: 267
First: 6/29/1999 Last: 4/13/2010 |
Does your COBRA notification letter to her indicate that partial payments will not be accepted? If it does, and this is the first time she has paid only a portion, then you should return the partial payment to her with a letter indicating you will not accept partial payment, and complete payment must be made within the grace period in order to keep her insurance current. If you have accepted partial payments in the past, you should stay consistent with what you have done.
If your initial COBRA letter does not include a statement about partial payments, and you would like an example of this statement, let me know and I will forward our wording to you. |
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COBRA Underpayments
posted at 7/14/1999 12:03 AM EDT
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Posts: 399
First: 6/21/1999 Last: 9/14/2005 |
We were given an increase by the carrier. We notified her on April 13 of the new rate to go into effect May 1 (due to a dispute over contract wording, that is as much notice as the carrier gave us). She made her May payment at the old rate. We notified her of the discrepancy and asked her to make up the difference with her June payment. She not only did not do so, she paid the June payment at the old rate too. No explanation, nothing. Since she consistantly pays at the very end of the grace period, we only got the June payment on June 27th, and it was not till this week that Accounting brought the discrepancy to my attention. I would like to send her a letter telling her that unless she has made up the difference for both months by the end of July, as well as sending in the July payment which is now overdue, by July first, the policy will be cancelled. Would I be legal? (By the way, this is her dental COBRA - she's paying the medical all right, if late. The total underpayment for both months is under $5. It won't break us; it's the principle of the thing.) |
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